Testing is normally something that you do when you test variables such as one headline versus another headline.
You make sure that you’re testing apples for apples.
The following test is not apples for apples but discloses an important direct mail truth.
When we do direct mail campaigns for clients, we employ a dozen unique strategies that most people are unaware of or do not incorporate.
One of these strategies involves “multi-buyers.”
When we use Transactional Data Modeling (TDM) and rental direct mail lists for a direct mail campaign, we can identify prospects who have purchased a product or service like the one we’re trying to sell or generate a lead from.
If we’ve used, for example, twenty-five different lists, some of the prospects are on twice. Some are on three times. And some are on more.
We recently did a direct mail campaign with a Newsalog (click here to see our article: “Newsalog” Generates 80 to 1 ROI: 6 Reasons Why It Was So Successful… [And Won a MarCom Gold Award]
We divided the mailing between one-time, two-time, and three-time buyers.
Obviously, the quantity for one-time buyers is higher than for two-time buyers, and the quantity for two-time buyers is much higher than for three-time buyers… It keeps getting lower.
However, here are the results of the tests… What you lose in quantity, you make up in response.
For example, with one-time buyers, the response rate was 0.65%, and the ROI 18.42.
For two-time buyers, the response rate was 2.33%, and the ROI was 53.14.
For three-time buyers, the response rate was 3.74%, and the ROI was 88.83.
The response rate and ROI increase as you move up to four, five, and six-time buyers.
The testing verifies that using the two or three-time (or more) buyers is a smart marketing strategy.
If you are interested in conducting a direct mail campaign, contact Michael Oppenheimer at 615-933-4647 or email him at [email protected].
He’ll explain some of the strategies and details to maximize your return on investment and why direct mail usually gets a better response than digital marketing.
And why integrating direct mail with your digital marketing increases response for direct mail and your digital marketing by over 80%.
